Held rate keeps NZ sharemarket flat

The New Zealand sharemarket was flat in early trading after Reserve Bank governor Alan Bollard surprised no one by leaving the official cash rate unchanged at 3 per cent.

Explaining his decision, Dr Bollard highlighted recent economic data that was weaker than expected and pointed to support coming from continued high export prices, and reconstruction after the Canterbury earthquake.

Among subdued early trading, heavyweight stock
Fletcher Building
initially gained 3¢ to $8.05 - partly reversing Wednesday's 6¢ fall - but within about 10 minutes of the market opening the stock was up just 1¢, to $8.03.

Telecom
gained 2¢ early to $2.06, after falling 3¢ on Wednesday, a
nd Contact Energy
was unchanged on $5.87.

Around 10.15am (8.15am AEDT) the benchmark NZX-50 index was down 0.47 per cent to 3279.87, having fallen 5.1 points on Wednesday.

Nuplex
added 2¢ early to $3.36, and NZX gained 2¢ to $1.58 having reported higher third quarter earnings after the market closed on Wednesday.

Fisher & Paykel Healthcare
fell 4¢ to $3.15,
Tower
lost 2¢ to $1.86,
The Warehouse
was down 2¢ to $4.02, and
Pike River Coal
fell 2¢ to $1.03.

In the United States, stocks fell as investors dialed back expectations of how aggressively the Federal Reserve will act to stimulate the economy.